What's actually happening
When you place an order on XAUUSD, your platform sends it to the broker's server. The broker checks: "Is the price still at what the trader requested?" If the price has moved beyond a threshold during the order's transit time, the broker sends back a requote - a new price offer.
The threshold that triggers a requote is often expressed in pips. On EURUSD, a 200 ms round-trip might see the price move 0.5 pips - well within the tolerance. On XAUUSD, that same 200 ms might correspond to 3-5 pips of movement during a volatile session. Gold's price velocity is structurally higher.
This means every millisecond of your round-trip latency has more impact on XAUUSD than on slow-moving pairs. Reducing latency reduces the gap the broker sees between your click and their receipt - and fewer gaps beyond the threshold means fewer requotes.